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Atlantic Gold secures C$150M credit facility to cut debt, fund growth

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Atlantic Gold secures C$150M credit facility to cut debt, fund growth

Atlantic Gold Corp. said July 3 that it signed a commitment letter for a C$150 million senior secured revolving credit facility with National Bank of Canada.

The facility will have a three-year term from closing, which is expected by the end of July, and can be extended annually. The interest rate will depend on the type of borrowing and the company's total leverage ratio at the time.

Atlantic Gold plans to use the proceeds to repay an existing project loan facility for its Moose River Consolidated gold mine in Nova Scotia and for additional development and growth opportunities.

The company secured the C$115 million project loan facility in February 2016 to fund most of the construction at Moose River. It plans to repay the balance of the existing facility of about C$110 million with a partial drawdown of the new facility.

The Moose River operation achieved commercial production in March and is expected to produce between 82,000 and 90,000 ounces of gold for the year.